Creating a Customer Focus Chapter 4 Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • From a customer’s standpoint, neither quality, cost nor schedule always comes first. When customers evaluate the products and services they receive, they make trade-offs between all three key factors in order to maximize value. The challenge that suppliers face is to provide their customers with the maximum value, which often is a balancing act between quality, cost and schedule. – Process Improvement Essentials – The First Among Equals, Quality Digest, June 1999 Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Dr. Armand Feigenbaum (1920 - ) – Author of Total Quality Control, one of the first and most complete texts on quality assurance Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Feigenbaum’s definition of Quality: – Quality is a customer determination which is based on the customer’s actual experience with the product or service, measured against his or her requirements—stated or unstated, conscious or merely sensed, technically operational or entirely subjective—always representing a moving target in a competitive market. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • How do we create an unwavering focus on the customer? • How do we ensure that our strategic plans and our leadership focuses on what is important to the customer and the market? Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Effective organizations talk to customers, translate what their customers said into appropriate actions, and align their key business processes to support what their customers want. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Why bother? – Business environment is extremely competitive – Today’s consumers demand quality more than ever before – Consumers are more willing to switch from company to company and not just to get a better price. They will switch for better service: reliability, accessibility, courtesy, and so on. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Why bother? – It is significantly cheaper to retain existing customers than to attract new ones. – Our competitors are gaining and it’s not getting any easier. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Creating an organization that has at its core the ability to sustain an unwavering focus on the customer is not a task for a single department within the organization. – Involve everyone! Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Lean Six Sigma organizations achieve a competitive advantage by carefully and constantly analyzing customers’ needs and by organizing and operating to meet these needs the first time and every time. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • How will we know what the customer wants? –Ask them. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Capture the voice of the customer • Use the voice of the customer to drive changes in the way you do business. – Quality Function Deployment Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus • Steps to perform a QFD 1. Determine the voice of the customer • What does the customer want 2. Have the customer rank the relative importance of his or her wants 3. Have the customer evaluate your company against competitors 4. Determine hoe the wants will be met – How does the company provide the wants Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus 5. Determine the direction of improvement for the technical requirements 6. Determine the operational goals for the technical requirements 7. Determine the relationship between each of the customer wants and the technical requirements 8. Determine the correlation between the technical requirements Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved. Creating a Customer Focus 9. Compare the technical performance with that of competitors 10. Determine the column weights 11. Add regulatory and/or internal requirements 12. Analyze the QFD matrix. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved.